These results are what we’ve all been reading here on this...

These results are what we’ve all been reading here on this forum.

Pay on 4/5/6 or whatever model the sub $1000 category bnpl offered is a debt trap and lures those who can’t afford to be in debt straight into their clutches. So much bad debt that could have been avoided.

The consolidation of our own products was evident months ago. Great that we are actually back focusing on what was a niche carve out of the market in Big Things. $21 million profit on that. Made more money than the HUMM90. Shame we poured it all down the drain on all the other bnpl products we offered.

The write down on goodwill and software (intangible assets) was purely due to the fact they had them reviewed when consumer finance was being sold.

With a tidying up of our product, a shift to commercial finance in NZ to replicate the AU broker model we can certainly expect a better FY23. I think the board are concerned about the overall macro-environment at the moment and are not wanting to make any forecasts for the road ahead as it is quite difficult to determine how much change and the impact it will have on the business.

The Covid spiel was a bit much. They didn’t make traction, own it. Sure we had a bucketload of rain here in Australia but I’d expect better from the board and management in taking responsibility for what was in their circle of influence. You can’t stop the weather or a virus from wreaking havoc, but you can certainly make sure you generate customer acquisition and merchant acquisition in your target market for big things.

The real issue is no one has come out and said “we made a mistake trying to pursue the sub $1000 market”. As a benefit to Humm big things customers, offering little things is fine. However as I mentioned in another thread, offering gift cards to those who can’t afford to put food on the table is predatory and those people were not our target market. Yet they got drawn in, and along with bundll contributed to the losses in the BNPL business.

I’m glad this is all behind us now. Looking forward we have a strong balance sheet, plenty of growth in our target markets and with that, I’m expecting a steady uptrend in SP over the next 6-12 months.

I’ve updated my sentiment to hold as I’m buying anymore until I see 1H23 results.